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  • #967806
    fanix
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    Is it possible to get an ABN without registering for GST?

    #1028906
    bizkid
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    Hey bud, you can get an ABN without registering for GST. But there are limitations (of course).. I dare not give you the wrong specifics, so if no one on here can be sure, I would probably call the ATO. Wouldn’t want to get it wrong!

    Good luck!

    #1028907
    CruzAccountant
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    Yes

    #1028908
    BruceR
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    FaNIX, post: 34532 wrote:
    Is it possible to get an ABN without registering for GST?

    Yes – if you’re in business you must have an ABN. If your turnover (actual or projected) is under $75k a year you don’t need to register for GST (although you may choose to). GST registration can be part of the online ABN registration (tick a box!).

    However you should see an accountant if you’re not entirely sure about any of this……

    #1028909
    SewSpunky
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    As PPs have indicated, you can get an ABN without registering for GST. If you are considering registering for GST I would strongly suggest discussing your plans with an accountant first.

    Should down the track the ATO decide your business actually falls within the realms of a hobby, you may find yourself with a large tax bill to pay back! I have seen this happen to a bricks and mortar ‘business’ that ran at a loss for too many years (think it was 5yrs?). ATO did an audit and determined the ‘business’ was a hobby. The result was over $40k having to be paid back to the ATO :(

    So it definitely pays to seek professional advice before registering for GST unless you are certain of the ins and outs of it all yourself :)

    #1028910
    fanix
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    SewSpunky, post: 34594 wrote:
    As PPs have indicated, you can get an ABN without registering for GST. If you are considering registering for GST I would strongly suggest discussing your plans with an accountant first.

    Should down the track the ATO decide your business actually falls within the realms of a hobby, you may find yourself with a large tax bill to pay back! I have seen this happen to a bricks and mortar ‘business’ that ran at a loss for too many years (think it was 5yrs?). ATO did an audit and determined the ‘business’ was a hobby. The result was over $40k having to be paid back to the ATO :(

    So it definitely pays to seek professional advice before registering for GST unless you are certain of the ins and outs of it all yourself :)

    Thanks for the heads up! I’m probably going to be employed full time within the next month or so, so I’m hoping to run my business parallel to working full time. Will this be seen by ATO as a hobby?

    #1028911
    Melinda B
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    FaNIX, post: 34641 wrote:
    Thanks for the heads up! I’m probably going to be employed full time within the next month or so, so I’m hoping to run my business parallel to working full time. Will this be seen by ATO as a hobby?
    The fact that you’re working full-time as well has no bearing on whether it’s a hobby or not. Check to see if what you’re doing falls under the ATO guidelines for Business or Hobby.

    Very simplisitically, if you’re intending to make a profit and operate on a regular basis then you’re a business.

    #1028912
    SewSpunky
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    FaNIX, post: 34641 wrote:
    Thanks for the heads up! I’m probably going to be employed full time within the next month or so, so I’m hoping to run my business parallel to working full time. Will this be seen by ATO as a hobby?

    I am not an accountant so do not want to be giving you advice as such (and my apologies I usually make that clear in my posts!!!). My recommendation though is to have a chat with your accountant. If you do not currently use an accountant, it is extremely wise to consult with one prior to starting your business.

    As Melinda has indicated, the ATO give a simplistic definition of ‘carrying on a business’ as being intention to make a profit and regular trading. However in reality this is not the full picture of what the ATO considers when they are actually applying their decision making!

    In the example I gave, the person was trading regularly from a dedicated business premises and hoping to make a profit. However for too many years expenses outweighed income and the ATO ruled it to be a hobby. Applying the simplistic definition would have deemed him a business.

    If you do not have an accountant currently, there are quite a few active forum members with accountancy businesses who I am sure would be happy to discuss your situation with you :)

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